Lawsuit filed for Investors who lost money with shares of Lakeland Industries, Inc. (NASDAQ: LAKE)

An investor, who purchased shares of Lakeland Industries, Inc. (NASDAQ: LAKE), filed a lawsuit over alleged violations of Federal Securities Laws by Lakeland Industries, Inc. in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Lakeland Industries, Inc. (NASDAQ: LAKE) have certain options and for certain investors are short and strict deadlines running. Deadline: April 24, 2026. NASDAQ: LAKE investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Huntsville, AL based Lakeland Industries, Inc., together with its subsidiaries, manufactures and sells industrial protective clothing and accessories for the industrial and public protective clothing market worldwide. The Company employs a so-called "small, strategic, and quick" ("SSQ") mergers and acquisitions ("M&A") strategy to purportedly drive its growth in revenue and profitability.

At the end of November 2023, Lakeland announced its acquisition of New Zealand-based Pacific Helmets NZ Limited ("Pacific Helmets"), a purported leading designer and manufacturer of helmets for the firefighting, wildland firefighting, and rescue markets. Defendants touted Pacific Helmets' purported "premium solutions" and said that the Company's acquisition of it enhanced Lakeland's product portfolio.
In February 2024, Lakeland announced its acquisition of the related companies Jolly Scarpe S.p.A. (based in Italy) and Jolly Scarpe Romania S.R.L. (collectively, "Jolly"), a purported leading designer and manufacturer of professional footwear for the firefighting, military, police, and rescue markets. Defendants touted this acquisition as another significant milestone in Lakeland's expansion efforts, as well as Jolly's purported strong brand with a well-established reputation for quality and innovative design and manufacturing.

In July 2024, Lakeland Industries, Inc represented that, for Lakeland's fiscal year ("FY") 2025,[1] they expected, inter alia, adjusted EBITDA,[2] excluding any material negative impact from foreign exchange ("FX"), to be in the range of $18 million to $21.5 million, and repeatedly reaffirmed that they expected the Company to achieve adjusted EBITDA of at least $18 million in FY 2025 thereafter.

In April 2025 Lakeland Industries, Inc represented that, for Lakeland's FY 2026, they expected revenue of $210 to $220 million and adjusted EBITDA, excluding any material negative impact from FX, of $24 to $29 million. Defendants indicated that, notwithstanding tariff-related uncertainties, they had visibility into Lakeland's future performance by virtue of various purported positive market signals they observed and their widely touted tariff mitigation measures.

On September 4, 2024, Lakeland Industries, Inc issued a press release reporting its financial results for the second quarter ("Q2") of its FY 2025. Among other results, Lakeland reported revenue of $38.51 million for the quarter, missing consensus estimates by $1.39 million. Defendant James M. Jenkins ("Jenkins"), the Company's President, Chief Executive Officer ("CEO"), and Executive Chairman, revealed "the shortfall was due to shipment timing," and that, inter alia, Jolly had "substantial fire orders delayed to the late third and early fourth quarter."

On April 9, 2025, during post-market hours, Lakeland issued a press release reporting its financial results for its fourth quarter ("Q4") and FY of 2025. Among other results, Lakeland reported Q4 GAAP[3] earnings per share ("EPS") of -$2.42, missing consensus estimates by $2.80, and FY 2025 adjusted EBITDA, excluding FX losses, of only $17.4 million-significantly below Defendants' repeatedly reiterated guidance of EBITDA of at least $18 million. Defendant Jenkins blamed these disappointing results on, inter alia, "a large Jolly fire boots order that was initially expected to ship in Q2 of FY25 [that] has now slipped into FY26," "weakness . . . at Pacific Helmets resulting from production issues and product offering updates[,]" and "slower than expected" "rollout of new products from Pacific Helmets and Jolly Boots[.]"

Then, on June 9, 2025, during post-market hours, Lakeland issued a press release reporting its financial results for the first quarter ("Q1") of its FY 2026. Among other results, Lakeland reported Q1 GAAP EPS of -$0.41, missing consensus estimates by $0.60, as well as revenue of $46.74 million, missing consensus estimates by $2.1 million. Defendant Jenkins blamed these disappointing results on, inter alia, its Pacific Helmets business "resulting from production issues and updates to product offerings[,]" as well as "shipment timing" and "tariff-related delays[.]" Defendant Roger D. Shannon ("Shannon"), Lakeland's Chief Financial Officer, attributed the shortfall in adjusted EBITDA in the quarter to, inter alia, "elevated freight costs resulting from tariff-related inventory build, and dilution from acquisitions."

On September 9, 2025, during post-market hours, Lakeland issued a press release reporting its financial results for Q2 of its FY 2026. Among other results, Lakeland reported revenue of $52.5 million for the quarter, missing consensus estimates by $2.09 million. Defendant Jenkins once again blamed these disappointing results on, inter alia, "Pacific Helmets resulting from updates to product offerings and production issues[,]" as well as "continued delays in purchasing decisions due to tariff uncertainty[.]"

Then, on December 9, 2025, during post-market hours, Lakeland Industries, Inc issued a press release reporting its financial results for the third quarter ("Q3") of its FY 2026. Among other results, Lakeland reported Q3 2026 GAAP EPS of -$1.64, missing consensus estimates by $1.93, and revenue of $47.6 million, missing consensus estimates by $9.05 million, blaming, inter alia, "timing, certification delays, and material flow issues" in its acquired businesses, as well as tariff-related headwinds. The press release further revealed that Lakeland was withdrawing its previously issued financial guidance for FY 2026 and would not provide financial guidance going forward because the foregoing "challenges have affected our forecasting ability[.]"
The same day, also during post-market hours, Lakeland filed a current report on Form 8-K with the SEC, disclosing that Defendant Shannon's employment had been terminated.

Shares of Lakeland Industries, Inc. (NASDAQ: LAKE) declined from $27.28 per share on Janaury 21, 2025 to as low as $7.71 per share on March 20, 2026.

According to the complaint the plaintiff alleges on behalf of purchasers of Lakeland Industries, Inc. (NASDAQ: LAKE) common shares between December 1, 2023 and December 9, 2025, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between December 1, 2023 and December 9, 2025, the Defendants made false and/or misleading statements and/or failed to disclose that Lakeland was experiencing significant, sustained issues with its Pacific Helmets and Jolly businesses, including, inter alia, shipping-related delays, production issues, and slower than expected rollout of new products, that accordingly, Defendants overstated the anticipated and actual positive impact of these businesses on Lakeland's financial results, as well as the overall strength and quality of Pacific Helmets' and Jolly's respective operations, that Lakeland's business and financial results were significantly deteriorating because of, inter alia, tariff-related headwinds and timing, certification delays, and material flow issues in its acquired businesses, that accordingly, Defendants overstated the strength of their tariff mitigation measures and SSQ M&A strategy, that as a result of all the foregoing issues, Defendants' financial guidance was unreliable, and that as a result, Defendants' public statements were materially false and misleading at all relevant times.

Those who purchased shares of Lakeland Industries, Inc. (NASDAQ: LAKE) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.